[Australian] Consumer groups hail credit card victory By Peter Weekes Personal Finance Reporter September 20, 2003
Consumer groups yesterday welcomed a Federal Court decision that could reshape the credit card industry and eventually put money back into the pockets of shoppers. The Federal Court in Sydney yesterday ruled that the Reserve Bank of Australia did not exceed its powers when it introduced new regulations on credit cards, due to come into effect on October 1. Visa and MasterCard challenged the RBA's power to impose the reforms, arguing that they were anti-competitive and unlikely to deliver any benefit to consumers. However, the Australian Consumers Association and the Consumer Federation of Australia were celebrating last night. "We welcome the decision by the Federal Court today in finding against Visa and MasterCard and supporting the Reserve Bank's reforms, which will now proceed as planned," said ACA finance policy officer Catherine Wolthuizen.
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"To date all consumers have been paying for the cost of frequent-flyer points earned by some credit card holders," said Ms Wolthuizen. "The Reserve Bank says those programs can no longer be subsidised by consumers generally."
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Chris Connolly, of the Consumer Federation of Australia, said the ruling meant savings of up to $600 million in the first year of the reform. "It's a big victory for consumers," he said. "There will be a domino effect across the banking system.
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http://www.theage.com.au/articles/2003/09/19/1063625218107.html